Financial Preparation

• Determine your total investment budget (property + transaction costs + reserves)
• Establish a currency exchange strategy (XCD is pegged to USD at 2.7:1)
• Set up international wire transfer capabilities with your home bank
• Explore options for setting up a local bank account (increasingly challenging for non-residents)
• Evaluate tax implications in both Antigua and Barbuda and your home country
• Consider whether citizenship benefits are worth the higher investment in CBI-qualified properties
• Assess currency risk and how property will fit into your overall investment portfolio

Market Research

• Identify target areas based on investment goals (capital growth vs. rental yield)
• Research location-specific price trends and rental yields
• Join online forums for Caribbean property investors
• Subscribe to local real estate listings and market reports
• Analyze tourism statistics and visitor demographics
• Research seasonality factors affecting rental demand
• Plan a preliminary market visit to evaluate areas firsthand

Professional Network Development

• Connect with attorneys specializing in Antigua and Barbuda property law
• Identify reputable real estate agents with experience assisting foreign buyers
• Research property management companies for remote ownership
• Establish contact with currency exchange specialists
• Find a tax advisor familiar with cross-border investment considerations
• For CBI investments, connect with authorized program agents
• Consider building relationships with local contractors for potential renovations

Expert Tip: Antigua and Barbuda has distinct high and low seasons for tourism. The high season (December through April) attracts North American and European visitors escaping winter, while the low season (May through November) sees reduced visitor numbers and coincides with hurricane season. This seasonality significantly impacts rental income potential, with high-season rates often 50-100% higher than low-season rates. Budget conservatively by using annual average occupancy rates rather than high-season projections for financial planning.

Important Consideration: When purchasing through the Citizenship by Investment Program, the application can be made in the name of an individual or a company, provided the beneficial owner is clearly identified. However, the property must be held for the full 5-year period in the same ownership structure. Changing ownership structure during this period could jeopardize citizenship status. Some developers offer structured investment options specifically designed to comply with CBI requirements while providing optimal asset protection.

Banking Setup

• Local Bank Account Options:
  • National and regional banks: Antigua Commercial Bank, Caribbean Union Bank, ECAB
  • International banks with local presence: Scotiabank, FirstCaribbean International Bank
  • Private banking services: Available for high-net-worth individuals (typically $250,000+ relationship)
• Account Opening Requirements:
  • Valid passport and secondary ID
  • Proof of address (utility bills, bank statements)
  • Bank reference letters
  • Source of funds documentation
  • In-person visit required by most institutions
• Banking Challenges:
  • Increasingly strict KYC/AML procedures
  • Time-consuming account opening process (2-4 weeks)
  • Some banks reluctant to open accounts for non-residents
  • Limited online banking capabilities compared to North America
• Alternative Approach: Many foreign investors complete property transactions without a local bank account by using their attorney’s client account for the purchase and then setting up property management with direct transfers to overseas accounts.

Financing Options

Financing for foreign buyers in Antigua and Barbuda is limited but available:

1. Local Bank Financing:
   • Availability: Restricted and selective, primarily for residents or established clients
   • Down Payment: Typically 30-50% for foreign buyers
   • Interest Rates: 7-9%, significantly higher than North American rates
   • Terms: Usually 10-15 years maximum for non-residents
   • Requirements: Extensive documentation, including international credit reports, proof of income, and substantial assets
2. Developer Financing:
   • Some CBI-approved developers offer payment plans or financing options
   • Typically requires 30-50% down payment
   • Higher interest rates than North American financing (8-12%)
   • Shorter terms (5-10 years)
   • More flexible qualification criteria than banks
3. International Financing:
   • Home country equity release or refinancing
   • International banks with Caribbean presence (primarily for high-net-worth clients)
   • Portfolio-backed loans using existing investment assets as collateral
   • Often more favorable rates than local financing

The majority of foreign buyers in Antigua and Barbuda use cash for their purchases, either from liquid assets or by leveraging equity in their home country properties. The higher interest rates and stringent requirements make local financing less attractive for most investors.

Currency Management

Effective currency management is crucial for optimizing your investment:

• Exchange Rate Stability:
  • Eastern Caribbean Dollar (XCD) is pegged to USD at 2.7 XCD = 1 USD
  • This eliminates direct currency risk with USD but not with other currencies like CAD or EUR
  • Long-term stability of the peg reduces currency uncertainty
• Currency Transfer Services:
  • Specialized services like Wise, OFX, or Moneycorp offer better rates than banks
  • Set up regular transfer services for ongoing property expenses
  • Consider forward contracts to lock in exchange rates for future payments
• Banking Considerations:
  • Bank accounts in Antigua and Barbuda can be maintained in USD, reducing conversion needs
  • International wire transfers typically incur fees of $25-50 per transaction
  • Plan for currency conversion costs in your investment calculations (typically 1-3% depending on method)

The USD peg provides currency stability that many other international markets lack, making Antigua and Barbuda particularly attractive to American investors. Canadian and European investors should still consider currency hedging strategies for significant investments.

Property Search Resources

• Online Property Portals:
  • Luxury Locations – Premier Antigua real estate agency
  • Antigua Real Estate – Established local agency
  • 7th Heaven Properties – Caribbean-wide listings
  • Property Antigua Barbuda – Comprehensive local listings
• Real Estate Agents:
  • Local agencies: Luxury Locations, Stanley’s Estate Agents, Antigua Estates
  • International firms with local presence: Savills, Knight Frank, Sotheby’s International
  • Citizenship by Investment specialists: Citizens International, Henley & Partners
  • Note: Unlike North America, most agents represent the seller not the buyer
• Developer Direct:
  • CBI-approved projects often sell directly to investors
  • Developments like Tamarind Hills, Pearns Point, Nonsuch Bay have dedicated sales teams
  • Can offer better pricing without agent commissions
  • Often provide comprehensive support for CBI applications
• Buyer’s Representatives:
  • Some firms offer exclusive buyer representation
  • Can provide unbiased guidance and negotiation support
  • Particularly valuable for remote or first-time Caribbean investors
  • Typically charge 2-3% of purchase price

Property Viewing Trip Planning

For overseas investors, an efficient property viewing trip is essential:

1. Pre-Trip Research:
   • Identify 8-12 potential properties before arrival
   • Schedule viewings in advance (quality properties move quickly)
   • Research neighborhoods thoroughly online
   • Arrange meetings with attorneys and potential property managers
   • If pursuing citizenship, schedule consultations with CBI agents
2. Trip Logistics:
   • Plan for 5-7 days on the island
   • Rent a car for flexibility in exploring different areas
   • Choose accommodations in a central location for your search areas
   • Allow time for experiencing the lifestyle and amenities
3. During Viewings:
   • Take detailed photos and notes
   • Ask about property history and maintenance
   • Inquire about typical rental occupancy and rates
   • Explore the surrounding neighborhood at different times
   • Check mobile reception and internet connectivity
   • For waterfront properties, assess beach quality and access
4. Additional Considerations:
   • Visit during your target rental season if possible
   • Experience the tourist amenities your potential renters would use
   • Meet with potential property managers on-site
   • Allow time to revisit top contenders before deciding

Property Evaluation Criteria

Assess potential investments using these key criteria:

• Location Factors:
  • Proximity to beaches and water access
  • Distance from airport and major amenities
  • Views and natural surroundings
  • Neighborhood safety and reputation
  • Nearby tourist attractions and activities
  • Future development plans for the area
• Property Characteristics:
  • Construction quality and materials (hurricane resistance)
  • Age and condition of systems (electrical, plumbing, HVAC)
  • Floor plan suitability for target renters
  • Outdoor spaces and landscaping
  • Amenities and features valued by tourists
  • Potential for value-adding improvements
• Rental Potential:
  • Historical occupancy rates in the area
  • Seasonal rate variations
  • Comparable rental listings performance
  • Property management options and fees
  • Reviews of nearby rental properties
  • Potential for various rental strategies (short vs. long term)
• Financial Considerations:
  • Price per square foot compared to area average
  • Total acquisition costs including ALHL and taxes
  • Estimated annual maintenance and operational costs
  • Realistic rental income projections across seasons
  • Local property tax obligations
  • Potential appreciation based on area trends

Expert Tip: For those seeking citizenship through investment, verify that your chosen property is officially approved for the CBI program before proceeding. The government maintains a list of approved developments, and purchasing outside this list, even at the minimum investment threshold, will not qualify for citizenship. Additionally, some CBI developers offer “guaranteed buyback” options after the required 5-year holding period, which can provide a clear exit strategy but often come with premium pricing compared to non-guaranteed properties.

Legal Due Diligence

• ✓
  Title Verification: Confirm legal ownership and review the title history
• ✓
  Land Registry Search: Verify registered boundaries and any encumbrances
• ✓
  Restrictive Covenants: Check for usage restrictions and HOA rules
• ✓
  Development Status: Confirm planning permissions and compliance
• ✓
  CBI Program Verification: For citizenship investments, verify official approval
• ✓
  Road Access: Confirm legal access and road ownership
• ✓
  Utilities: Verify water, electricity, and sewage connections/rights
• ✓
  Property Taxes: Check for any outstanding tax liabilities

Physical Due Diligence

• ✓
  Property Inspection: Commission a thorough inspection by a qualified professional
• ✓
  Hurricane Resistance: Assess structural integrity for extreme weather
• ✓
  Water Systems: Check water quality, pressure, and storage capacity
• ✓
  Electrical Systems: Verify adequacy and condition of electrical infrastructure
• ✓
  Boundary Survey: Confirm actual property boundaries match documentation
• ✓
  Environmental Concerns: Check for flood risk, erosion, or other natural hazards
• ✓
  Internet Connectivity: Test actual speeds and reliability for remote work/rentals
• ✓
  Neighborhood Assessment: Evaluate surrounding properties and future development

Financial Due Diligence

• ✓
  Market Valuation: Obtain independent appraisal to verify fair market value
• ✓
  Comparable Sales Analysis: Research recent sales of similar properties
• ✓
  Rental Income Verification: If an existing rental, review actual financial history
• ✓
  Operating Expenses: Calculate all ownership costs including management, utilities, maintenance
• ✓
  Property Tax Assessment: Verify current and projected property tax obligations
• ✓
  Insurance Costs: Obtain hurricane and property insurance quotes
• ✓
  Developer Research: For pre-construction, investigate developer’s track record and financial stability
• ✓
  Cash Flow Analysis: Prepare detailed projections with conservative occupancy estimates

Expert Tip: Hurricane insurance is essential but can be expensive in Antigua and Barbuda. Rates vary significantly based on construction quality, elevation, and proximity to water. Obtain quotes early in your due diligence process, as insurance costs can significantly impact your overall investment returns. Properties built to international hurricane codes with concrete construction typically qualify for lower premiums. Some developments offer master insurance policies that provide better coverage at lower rates than individual policies.

Offer and Negotiation

1. Make an Offer: Typically done through the real estate agent
2. Negotiation: Back-and-forth on price, terms, and inclusions
3. Offer Acceptance: Verbal agreement (not legally binding at this stage)
4. Purchase Agreement: Draft agreement outlining terms and conditions
5. Deposit: Typically 10% of purchase price paid to demonstrate commitment

Similar to other Caribbean jurisdictions, offers in Antigua and Barbuda are not legally binding until a formal contract is signed and deposit paid. This means either party can potentially withdraw prior to this point without significant legal consequences, though the market generally operates on good faith principles, and reputation is important among the relatively small real estate community.

Legal Process

1. Attorney Engagement: Retain a local attorney experienced in foreign transactions
2. Title Search: Attorney performs comprehensive title search
3. Alien Landholding License: Application submitted to government (unless exempt through CBI)
4. Contract Review: Detailed review of purchase agreement terms
5. Due Diligence: Attorney confirms property status and encumbrances
6. Contract Signing: Both parties sign final purchase agreement
7. ALHL Approval: Government issues license (typically 3-6 months)
8. Completion: Final payment made and title transferred

The most time-consuming element of the process is typically obtaining the Alien Landholding License, which can take several months. For citizenship investors purchasing approved properties, this requirement is waived, significantly expediting the transaction timeline.

Transaction Costs

Budget for these typical transaction expenses:

• Property Purchase Taxes and Fees:
  • Stamp Duty: 2.5% for buyer and 7.5% for seller
  • Alien Landholding License: 5-7% of property value (waived for CBI purchases)
  • Legal Fees: 1-2% of purchase price
  • Registration Fee: 0.5% of property value
  • Property Survey: $1,000-2,500 depending on complexity
  • Property Transfer Tax: 2.5% (sometimes negotiated to be paid by seller)
• Citizenship by Investment Specific Costs (if applicable):
  • Government Processing Fees: $30,000 for family of 4, $15,000 per additional dependent
  • Due Diligence Fees: $8,500 for main applicant, $5,000 for spouse, $2,000-4,000 per dependent
  • Legal and Application Fees: $25,000-50,000 depending on complexity
  • Passport Fees: $300 per person
• Additional Expenses:
  • Property Inspection: $500-1,500
  • Insurance (first year): $3,000-10,000 depending on property value and location
  • Currency Exchange Costs: Typically 1-3% of transaction value
  • Banking Fees: $500-1,000 for international transfers

Total transaction costs for foreign investors in Antigua and Barbuda typically range from 11-15% of the purchase price for standard transactions, or 20-25% for combined property purchase and citizenship acquisition. These costs should be factored into your overall investment calculations.

Expert Tip: Consider using an escrow service for the transaction to provide security for both parties. These services hold funds until all conditions are met, protecting your investment in case of unforeseen issues. While standard practice in North America, escrow services aren’t automatically used in Antigua and Barbuda, so you may need to specifically request this arrangement. Your attorney can typically recommend reputable escrow providers or may offer this service through their firm’s client account.

Administrative Tasks

• ✓
  Land Registry: Ensure property is properly registered in your name (handled by attorney)
• ✓
  Utility Transfers: Set up accounts for electricity, water, and telecommunications
• ✓
  Property Insurance: Secure comprehensive coverage including hurricane protection
• ✓
  Property Tax Registration: Ensure property tax records reflect new ownership
• ✓
  Homeowner Association: Register with development management if applicable
• ✓
  Property Management Agreement: Establish formal relationship with management company
• ✓
  Citizenship Documentation: For CBI investors, complete passport application process

Regulatory Compliance

If renting your property, ensure compliance with these requirements:

• Business License: Required for operating rental properties in Antigua and Barbuda
• Hotel Tax: 12.5% Antigua and Barbuda Sales Tax (ABST) applies to short-term rentals
• Safety Standards: Ensure property meets local fire and safety regulations
• Insurance Requirements: Maintain adequate liability coverage for rental operations
• Banking: Set up accounts for rental income collection and expense management
• Reporting: Maintain proper records for tax and regulatory purposes
• Tourist Accommodations License: Required for properties regularly offering short-term stays

Working with a professional property management company can simplify compliance with these requirements, as they typically handle licensing, tax collection, and reporting as part of their services.

Record Keeping

Maintain comprehensive records for tax and legal purposes:

• Property Documents:
  • Purchase contracts and closing statements
  • Title documents and land registry certificates
  • Property surveys and boundary maps
  • Building plans and permits
  • Insurance policies and claims history
• Financial Records:
  • All property-related expenses with receipts
  • Rental income and occupancy data
  • Tax payments and filings
  • Utility and service payments
  • Capital improvements (may affect future capital gains)
• Citizenship Documents (if applicable):
  • Investment confirmation certificates
  • Government approval letters
  • Citizenship certificates
  • Passport renewal information
• Operational Records:
  • Property management agreements
  • Rental agreements and guest history
  • Maintenance and repair history
  • Service provider contracts
  • Property inspection reports

Digital record-keeping systems with secure backups are strongly recommended, particularly for overseas investors managing properties remotely. Many property management companies now offer owner portals that maintain these records and provide real-time access to property performance data.

Expert Tip: For citizenship investors, the 5-year holding requirement for real estate investments is strictly enforced. Detailed documentation of continued ownership is required during passport renewal after the initial 5-year validity period. The government also requires proof of the 5-day minimum stay in Antigua and Barbuda during this period, which can be satisfied by keeping records of your entry and exit stamps, hotel receipts, or property usage logs. Plan to visit the islands at least once during the 5-year period to meet this requirement.

Antigua and Barbuda Tax Obligations

• No Personal Income Tax: Antigua and Barbuda abolished personal income tax in 2016
• Property Tax: 0.1-0.5% of assessed property value annually
• Property Transfer Tax: 7.5% for sellers, 2.5% for buyers upon sale
• Appreciation Tax: Non-resident sellers pay additional 5% on property value when selling
• Antigua and Barbuda Sales Tax (ABST): 12.5% on short-term rental income (collected from guests)
• No Capital Gains Tax: No tax on appreciation when selling property
• No Inheritance Tax: No taxes on inherited property
• Undeveloped Land Tax: Non-residents owning undeveloped land pay 10-20% of land value

Antigua and Barbuda’s tax system is highly favorable to foreign investors, with no taxation on worldwide income, capital gains, or wealth. Property-related taxes are modest compared to many North American and European jurisdictions, making ongoing ownership costs relatively low.

Home Country Tax Obligations

Antigua and Barbuda does not have comprehensive tax treaties with the United States or Canada, though certain agreements exist with CARICOM countries. This makes proper tax planning essential to avoid potential double taxation issues, particularly regarding rental income. Consultation with tax professionals experienced in both your home country and Caribbean investment is strongly recommended.

Tax Planning Strategies

• Citizenship Benefits: Obtaining Antiguan citizenship can provide certain tax planning advantages, though U.S. citizens remain taxed on worldwide income regardless of citizenship
• Corporate Structures: Consider using International Business Companies (IBCs) to hold property, potentially providing tax benefits depending on your home country rules
• Expense Tracking: Maintain meticulous records of all property-related expenses to maximize legitimate deductions
• Rental Strategy: Evaluate short-term vs. long-term rental approaches for optimal tax treatment
• Property Improvement Timing: Strategic timing of capital improvements can maximize deductions
• Sale Timing: Consider tax year timing for property sales to optimize tax position
• Mortgage Structure: Evaluate different financing approaches for tax efficiency
• Family Ownership: Consider family member inclusion in ownership for income splitting or estate planning

The interplay between Antigua and Barbuda’s tax-free environment and your home country’s tax system creates various planning opportunities. Working with professionals who understand both jurisdictions can help you develop a compliant strategy that minimizes your overall tax burden while avoiding aggressive approaches that might trigger audits or penalties.

Expert Tip: U.S. investors should be particularly careful about passive foreign investment company (PFIC) rules when using corporate structures to hold Antigua and Barbuda real estate. Certain ownership arrangements that are tax-advantageous for other nationalities can create significant tax complications for Americans. Similarly, Canadian investors should be aware of foreign property reporting requirements and the foreign accrual property income (FAPI) rules when using offshore corporations. Always work with tax advisors who specialize in cross-border investment structures.

Selecting a Property Manager

Evaluate potential property managers using these criteria:

• Experience with Foreign Owners:
  • Track record managing properties for overseas investors
  • Clear communication protocols across time zones
  • Understanding of international banking needs
  • Experience with tax reporting for foreign owners
• Local Market Knowledge:
  • Established presence in your property’s area
  • Understanding of seasonal demand patterns
  • Strong relationships with local service providers
  • Familiarity with local regulations
• Marketing Capabilities:
  • Comprehensive online marketing strategy
  • Multiple booking channel integrations
  • Professional photography and listing creation
  • Dynamic pricing strategies
• Technology Platform:
  • Real-time owner portal for performance tracking
  • Automated financial reporting
  • Digital communication systems
  • Secure payment processing
• Operational Excellence:
  • Reliable cleaning and maintenance protocols
  • 24/7 guest support
  • Preventative maintenance programs
  • Emergency response procedures (particularly for hurricanes)

Management Agreement Essentials

Ensure your property management contract includes these key elements:

• Scope of Services: Detailed description of exactly what is included and excluded
• Fee Structure: Clear explanation of all management fees, commissions, and additional charges
• Contract Term and Termination: Duration of agreement and termination conditions
• Owner Usage: Policy for owner stays and blocking calendar dates
• Performance Metrics: Expected occupancy rates and revenue targets
• Reporting Schedule: Frequency and format of financial and property condition reports
• Maintenance Authority: Spending limits for repairs without prior approval
• Marketing Commitments: Specific marketing activities and platforms included
• Insurance Requirements: Coverage expectations and liability boundaries
• Guest Policies: Rules regarding minimum stays, occupancy limits, pet policies, etc.
• Owner Access: Provisions for owner inspection and oversight
• Regulatory Compliance: Responsibility for licenses, taxes, and legal requirements

Request detailed references from current clients, particularly other North American owners, before signing with a property management company. Ask specifically about communication responsiveness, financial reporting accuracy, and maintenance handling, as these are the most common areas of concern for remote owners.

Expert Tip: Consider forming relationships with multiple service providers rather than relying exclusively on one company. Many successful investors maintain a primary property manager for guest services while developing direct relationships with trusted local contractors for maintenance and renovations. This approach can provide better oversight of major expenses while still offering guests a seamless experience. Additionally, having a secondary contact on the island for emergencies provides valuable redundancy in case your primary manager is unavailable during critical situations.

Exit Options

Sale Process

When selling your Antigua and Barbuda property:

1. Pre-Sale Preparation:
   • Property refreshment and updates
   • Professional photography and marketing materials
   • Gathering of all relevant documentation
   • Market analysis for optimal pricing
2. Agent Selection:
   • Choose agents with international buyer networks
   • Consider exclusive vs. multiple agency representation
   • Review marketing strategy and capabilities
   • Typical commission: 5-7% of sale price
3. Legal Preparation:
   • Engage an attorney to prepare documentation
   • Ensure all property taxes are current
   • Resolve any title issues or encumbrances
   • For CBI properties, confirm resale eligibility
4. Marketing Period:
   • Online and international property portals
   • Targeted marketing to potential CBI investors (if applicable)
   • Virtual tours for international buyers
   • Typically requires 3-9 months for optimal exposure
5. Transaction Process:
   • Buyer applies for ALHL (unless CBI investor)
   • Negotiation of terms and conditions
   • 10% deposit typically held in escrow
   • Allow 3-6 months for ALHL approval and closing
6. Post-Sale Requirements:
   • Pay 7.5% stamp duty and 5% appreciation tax (if non-resident)
   • Settle any outstanding property taxes or fees
   • Transfer utilities and service contracts
   • Notify property management and HOA

The timing of your sale can significantly impact returns. The Antigua and Barbuda market typically sees strongest buyer interest during the Northern Hemisphere winter (December-April) when tourism peaks. Marketing should ideally begin 2-3 months before this period to maximize exposure during prime buying season.

Market Exit Timing Considerations

Several factors should influence your exit timing decision:

• Tourism Trends: Property values closely follow tourism performance; strong growth in visitor numbers typically precedes property value increases
• CBI Program Status: Changes to citizenship program terms can significantly impact demand for qualifying properties
• Currency Exchange Rates: USD/XCD stability provides predictability, but fluctuations against other currencies (CAD, EUR, GBP) can impact buyer pool
• Regional Competition: Developments in competing Caribbean destinations can affect demand for Antigua properties
• Infrastructure Developments: New resorts, airlift additions, or major amenities can boost specific areas
• Hurricane Recovery Periods: Values typically dip after major storms but recover within 12-24 months
• Global Economic Factors: Luxury Caribbean real estate is sensitive to economic conditions in source markets
• Citizenship Holding Period: For CBI investors, timing relative to the 5-year holding requirement is critical

The most successful investors establish clear performance benchmarks and regularly evaluate their Antigua and Barbuda property investments against both local and global alternatives. Setting specific return targets rather than indefinite holding periods enables more objective exit decisions based on investment performance rather than emotional attachment.

Expert Tip: If you purchased your property through the Citizenship by Investment Program, carefully time your sale relative to passport renewal. Your first passport is valid for 5 years, aligning with the minimum property holding period. However, selling immediately after this period requires perfect timing to maintain citizenship status. Many investors choose to retain their property until after their first passport renewal (which requires proving the 5-day residency requirement was met) before executing their exit strategy. This approach provides greater security for citizenship status while still enabling property disposition in year 6 or 7.